Intermediate Accounting Kieso - Chapter 1
Study online at https://quizlet.com/_1jnc09
1. Essential characteristics of accounting: identification, measurement and com-
munication of finanical information about economic entities to interested parties
2. Financial Accounting: the process that culminates in the preparation of of finan-
cial reports on the enterprise for use by both internal and external parties
3. Managerial Accounting: process of identifying, measuring, analyzing and com-
municating financial information needed by management to plan, control alnd eval-
uate a comopany's operations
4. Financial Statements: principle means through wich a company communicates
its financial information to those outside of it; provide a company's history quantified
in money terms
5. Most frequently provided finanical statements: *balance sheet
*income statement
*statement of cash flows
*statement of owners (SH) equity
6. Examples of financial reporting: supplementary schedules; news releases
annual report; management's forecasts
7. Financial Reporting: the financial information a company provides to help users
with capital alloation decisions about the company
8. Capital allocation: the process of determining how and at what cost money is
allocated among competing interests
9. Objective of financial reporting: provide financial information about the report-
ing entity that is useful to present and potential equitity investors, lenders and other
creditors
10. General-Purpose financial statements: provide financial reporting to a wide
variety of users (ie shareholders, creditors, suppliers, etc)
11. Entitiy perspective: companies are viewed as separate and distinct from their
owners
12. Proprietary perspective: a perspective that finanical reporting should be fo-
cused only on the needs of the shareholders (not appropriate)
13. accrual-based accounting: ensures that a company records events that
change its finanical statements in the periods in which these events OCCUR, not so
much when the cash is received/distributed
14. Organizations that are instrumental in the development of finanical ac-
counting standards (GAAP): Securities and Exhange Commission (SEC); Amer-
ican Institute of Certified Public Accountants (AICPA); Financial Accounting Stan-
dards Board (FASB)
15. Securities and Exhange Commission (SEC): helped to develop and standard-
ize financial information presented to stockholders; has the power to make changes
it deems necesseary
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Study online at https://quizlet.com/_1jnc09
1. Essential characteristics of accounting: identification, measurement and com-
munication of finanical information about economic entities to interested parties
2. Financial Accounting: the process that culminates in the preparation of of finan-
cial reports on the enterprise for use by both internal and external parties
3. Managerial Accounting: process of identifying, measuring, analyzing and com-
municating financial information needed by management to plan, control alnd eval-
uate a comopany's operations
4. Financial Statements: principle means through wich a company communicates
its financial information to those outside of it; provide a company's history quantified
in money terms
5. Most frequently provided finanical statements: *balance sheet
*income statement
*statement of cash flows
*statement of owners (SH) equity
6. Examples of financial reporting: supplementary schedules; news releases
annual report; management's forecasts
7. Financial Reporting: the financial information a company provides to help users
with capital alloation decisions about the company
8. Capital allocation: the process of determining how and at what cost money is
allocated among competing interests
9. Objective of financial reporting: provide financial information about the report-
ing entity that is useful to present and potential equitity investors, lenders and other
creditors
10. General-Purpose financial statements: provide financial reporting to a wide
variety of users (ie shareholders, creditors, suppliers, etc)
11. Entitiy perspective: companies are viewed as separate and distinct from their
owners
12. Proprietary perspective: a perspective that finanical reporting should be fo-
cused only on the needs of the shareholders (not appropriate)
13. accrual-based accounting: ensures that a company records events that
change its finanical statements in the periods in which these events OCCUR, not so
much when the cash is received/distributed
14. Organizations that are instrumental in the development of finanical ac-
counting standards (GAAP): Securities and Exhange Commission (SEC); Amer-
ican Institute of Certified Public Accountants (AICPA); Financial Accounting Stan-
dards Board (FASB)
15. Securities and Exhange Commission (SEC): helped to develop and standard-
ize financial information presented to stockholders; has the power to make changes
it deems necesseary
1/3
